The Slovak economy is one of the few in Europe showing real and significant growth – the second quarter of 2008 saw annual growth at 7.6%. For some years it has been a favoured investment location for international car-makers and engineers (it now manufacture more cars per head of population than any other country in the world), and it has benefited from a low uniform tax rate of 19%. Stability has also been enhanced by Slovakia being the first of the new EU accession countries to join the Euro - the rate has already been fixed and the conversion goes live on 1st January 2009.

The property market – even a few years ago sleepy and undeveloped – has responded to the economic uplift. The last 5 years saw prices of properties rising 20-30% and in some places even 100%. The good news for property investors is that the market is still in its infancy and the prices are expected to continuing rising at a minimum of 15 - 20% per annum for the next few years.

For foreign investors two regions have been the main interest– Bratislava, at the western end of the country, and the Tatra Mountain tourist region in the east. Both are now well served by train and air connections from Western Europe.

Bratislava’s location advantage is as capital of this growth economy, and its proximity to Vienna. Rents and prices have risen sharply over recent years in this area.

The Tatra region is gradually upgrading its winter-sports facilities and is seeing major investments from hotel groups and leisure groups. New holiday apartment developments are being built, but the region also offers investment value in older properties in some of its picturesque historic towns and villages. Even though prices for properties in this area rose about 30% in the last 3 years they are still cheaper then properties in west part of Slovakia. Re sale property from as little as £30,000 and luxury developments in ski resorts for under £60,000 make investment very attractive. Prices for land in villages around High Tatras are from 33 - 66 EUR/m2.

The cost of living in Slovakia is far cheaper than most of Europe and taxes are considerably less expensive too. Property tax payable once a year is about 1000,-Sk per year.

The process of buying a property is quick and uncomplicated. Always use an independent lawyer to work out a contract you are happy with and once signed by both buyer and seller the land registry office will make a new certificate of ownership within15 days, which costs 8 000,-Sk.

35.25 Slovakian Krowns to 1Euro at time of writing [September 2008], but Slovakia will join the Euro in January 2009. Now is the time to strike before prices inevitably rise.